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DynTek and Union Bank, N.A. Announce New Lending Facility and Commercial Banking RelationshipDynTek Secures $15 Million Line of Credit (January 04, 2012)
NEWPORT BEACH, CA and SAN FRANCISCO, CA -- (Marketwire) -- 01/04/12 -- DynTek, Inc. (PINKSHEETS: DYNE), a leading provider of professional technology services, and Union Bank, N.A., a full-service commercial bank, today announced the companies have entered into a new three-year $15 million revolving line of credit and commercial banking relationship.
The new line of credit structure is intended to provide DynTek with reduced interest expense and increased flexibility to support the Company's strategic growth initiatives and investments. The Company plans to use the funds to support general working capital and future revenue growth across its national base. DynTek reported revenues of $123.8 million for the fiscal year ended June 30, 2011, an increase of 45% from $85.6 million in fiscal year 2010.
"This new credit facility and commercial banking relationship is another major milestone for our organization and is a direct result of the profitable growth, operational efficiencies and investment in core technology practice areas that has been our primary strategic focus area for the past several years," said Ron Ben-Yishay, DynTek's chief executive officer. "Union Bank is a valued partner in our future success and their confidence in our financial condition, management team, and future prospects is an important industry validation."
"During a very challenging economic period in our country, DynTek was able to thrive and showcase record results," said Senior Vice President Michael Murphy, Division Manager of Union Bank's Commercial Finance Division. "We're happy to support their continuing success and look forward to seeing our relationship grow and prosper."
About UnionBanCal Corporation & Union Bank, N.A.
Headquartered in San Francisco, UnionBanCal Corporation is a financial holding company with assets of $84 billion at September 30, 2011. Its primary subsidiary, Union Bank, N.A., is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank operated 404 full-service branches in California, Washington, Oregon and Texas, as well as two international offices, on September 30, 2011. UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG) (NYSE: MTU), one of the world's largest financial organizations. Visit www.unionbank.com for more information.
DynTek is a leading provider of professional technology services to mid-market companies, such as state and local governments, educational institutions and commercial entities in the largest IT markets nationwide. From virtualization and cloud computing to unified communications and collaboration, DynTek provides professional technology solutions across the three core areas of our customers' technical environment: Infrastructure/Data Center, Microsoft Platform, End Point Computing. DynTek's multidisciplinary approach allows our clients to turn to a single source for their most critical technology requirements. For more information, visit http://www.dyntek.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements made in this press release, such as statements relating to the effect that the adoption of the revolving line of credit will have on our business and our intended use of funds borrowed under the revolving line of credit, involve known and unknown risks and uncertainties that could cause actual results to materially differ from the forward-looking statements. Such risks and uncertainties include, among others, our success in reaching target markets for services and products in a highly competitive market; our ability to maintain existing customers and attract future customers; our ability to finance and sustain operations, including our ability to comply with the terms of the revolving line of credit and the Company's other existing and future indebtedness; our ability to achieve profitability and positive cash flow from operations; our ability to maintain business relationships with IT product vendors; the size and timing of additional significant orders for our products and services and our ability to fulfill such orders; the continuing desire of state and local governments to outsource to private contractors and the availability of budgets to place orders for our products and services; our ability to retain skilled professional staff and certain key executives; the performance of our government and commercial technology services; and the continuation of general economic and business conditions that are conducive to outsourcing of IT services. We have no obligation to publicly revise any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.
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